Krey20
Senior Member
Hi all, I wondered if you could help me with something.
I'm looking to buy myself a nice, shiny new mac, which is always an exciting time, but it's the first time I've made a large purchase like this while having to keep the taxman in mind.
I believe I would have to write it off as a capital expenditure and spread the expense over the life of the computer.
Then I have to take in mind that it probably won't be used exclusively for business purposes.
So this is how I would go about it, in my tax returns. Please point out any nonsense and faults in my reasoning.
So I buy the mac. Then I have to decide on the percentage of its use, probably 70%-30% or 80%-20% splits between business and personal.
Then I take that 70% or 80% sum of money as my starting point as the cost that I can put back into the books.
According to my research I have to work out a working life of the product, so I think it's fair to say I don't expect it to last much more than 3 years before I need to spend more money in some way.
In the first year I can put 40% of the eligible amount through the books and then split the remaining 60% over the next two years as 30% blocks.
Hopefully I've understood this properly, but I thought I'd ask. Any help is appreciated.
I'm looking to buy myself a nice, shiny new mac, which is always an exciting time, but it's the first time I've made a large purchase like this while having to keep the taxman in mind.
I believe I would have to write it off as a capital expenditure and spread the expense over the life of the computer.
Then I have to take in mind that it probably won't be used exclusively for business purposes.
So this is how I would go about it, in my tax returns. Please point out any nonsense and faults in my reasoning.
So I buy the mac. Then I have to decide on the percentage of its use, probably 70%-30% or 80%-20% splits between business and personal.
Then I take that 70% or 80% sum of money as my starting point as the cost that I can put back into the books.
According to my research I have to work out a working life of the product, so I think it's fair to say I don't expect it to last much more than 3 years before I need to spend more money in some way.
In the first year I can put 40% of the eligible amount through the books and then split the remaining 60% over the next two years as 30% blocks.
Hopefully I've understood this properly, but I thought I'd ask. Any help is appreciated.
